What type of insurance protects business owners in case of loss of business income due to disability?

The correct type of insurance that protects business owners in case of loss of business income due to disability is Business Overhead Expense Insurance. This type of insurance specifically covers ongoing expenses, such as rent, utilities, and salaries, that a business incurs despite the owner's inability to work due to disability. The intention is to ensure that the business can continue its daily operations and meet financial obligations even when the owner is unable to contribute actively.

Business Overhead Expense Insurance is distinct from other types of coverage. Business Interruption Insurance typically focuses on revenue loss during a time when a business cannot operate due to a covered event, such as a fire or natural disaster. Loss of Use Insurance generally applies to personal property, providing compensation for lost use rather than business overhead. Key Person Insurance is designed to cover the loss of an essential employee by providing funds to the business in the event that a vital individual becomes disabled or passes away.

Each of these options serves a different purpose, making it important for business owners to clearly understand which type of insurance best suits their needs for safeguarding against income loss due to disability.